Barclays 12.5% savings account

Barham

I was wondering if anyone had taken out barclay's 12.5% savings account offer at the beginning of last year, only to discover that the interest received at the end of the year's lock in term did not amount to anywhere near 12.5%?

I feel I have been miss-sold the account at the branch and they are now claiming I was aware that the interest was an APR rate and that the interest paid is therefore correct.

Can anyone advise me on any course of action that I can take? I have already complained by phone and I now intend to respond in writing to the letter I received, but is there anything else I can do?

Barham

I understand how APR works, but I was led to believe that the interest would not be paid in this way.

The figures are:

£125 - 49 days - £2.10 interest
£250 - 31 days - £2.65
£375 - 33 days - £4.24
£500 - 28 days - £4.79
£625 - 30 days - £6.42
£750 - 33 days - £8.48
£1000 - 29 days - £9.93
£1250 - 30 days - £12.84
£1500 - 31 days - £15.92
£1750 - 31 days - £18.58
£2000 - 32 days - £21.92
£2250 - 8 days - £6.16

Total interest £114.04 before tax

merlinthehappypig

I've worked the lot out - it's 12.5%.

I can't see the problem, sorry. I think Al Mac's guess is correct.

Barham

No I was under the impression that the interest would be calculated monthly

thumshie

Barham wrote: »

No I was under the impression that the interest would be calculated monthly

There's 12 interest calculations above, it looks like it was calculated monthly??

OR do you mean you were under the impression that you'd get 12.5% interest applied to the balance every month? While accounts may say interest is paid monthly they always have the three letters APR(or AER even) to show it's not 12.5% every month....

merlinthehappypig

Barham wrote: »

No I was under the impression that the interest would be calculated monthly

It is calculated monthly.

Each monthly figure that you give has attracted 12.5% interest for the number of days that you quote.

For example, £2000 at 12.5% for a year would be £250 interest. Divide that by 365 to give a daily rate and multiply it by the number of days that you give (32) and you get £21.92, which is what was paid.

I think you need to post what you where expecting so this can be explained to you.

It all looks perfectly o.k. to me, but I appreciate that interest calculations can be confusing to many people.